Find the compound interest when principal = Rs 3000, rate = 5% per ann

1.	Find the compound interest when principal = Rs 3000, rate = 5% per annum and time = 2 years.
Answer» Given details are, Principal (p) = Rs 3000 Rate (r) = 5% Time = 2years Interest for the first year = (3000×5×1)/100 = 150 Amount at the end of first year = Rs 3000 + 300 = Rs 3150 Principal interest for the second year = (3150×5×1)/100 = 157.5 Amount at the end of second year = Rs 3150 + 157.5 = Rs 3307.5 ∴ Compound Interest = Rs 3307.5 – Rs 3000 = Rs 307.5

Find the compound interest when principal = Rs 3000, rate = 5% per annum and time = 2 years.

Answer»

Given details are,

Principal (p) = Rs 3000

Rate (r) = 5%

Time = 2years

Interest for the first year = (3000×5×1)/100 = 150

Amount at the end of first year = Rs 3000 + 300 = Rs 3150

Principal interest for the second year = (3150×5×1)/100 = 157.5

Amount at the end of second year = Rs 3150 + 157.5 = Rs 3307.5

∴ Compound Interest = Rs 3307.5 – Rs 3000 = Rs 307.5